Published: 25 January 2018

FIDELITY Printers and Refiners (FPR) has threatened to withdraw licences for agents it accuses of defying a directive to use receipt books issued by the State-controlled company when buying gold from the small-scale and artisanal miners.

The agents are also said to be exploiting the vulnerable small miners since they offer 100 percent cash payout when buying gold. FPR last year reduced cash payments to small-scale and artisanal gold miners to 60 percent, with the balance being paid through bank transfers. Speaking at a Zimbabwe Miners Federation event held in the capital last week, FPR's operations manager, David Mpofu, said the company would deregister "errant agents".

"All FPR licensed agents are required to use receipt books that we issue to them, instead of their own. If issued with other receipts, miners should phone us and we will take action. We also hear they are paying 100 percent cash to small-scale and artisanal miners just to disturb the system being used by FPR. These are errant agents. We are going to de-register them," Mpofu said.

He added: "We are also going to control holders of such licences. We will make regular inspection of their records and we also want monthly feedback reports to ensure that its only people who are able to do this job that are licensed. We are also planning to reduce the tenure of the licence to last just one month. We have also raised the minimum quantum of gold they (agents) should deliver to FPR from 500 grammes to six kilogrammes."

President of Women in Rural Mining, Shamiso Hozo, confirmed that some FPR agents were not using FPR issued receipt books when buying gold from small-scale and artisanal miners. "FPR should assist us by paying cash for our gold. We are selling it to agents who are paying us 100 percent cash. But the problem is that the receipts that they are giving us are not from FPR but their own which results in them exploiting us," Hozo said. President of the Youth in Mining Association in Zimbabwe, Philemon Mokuele, said FPR should "pay 100 percent cash for gold".

"Your agents are paying 100 percent cash, but you are not. Just try and do 100 percent, you will be done (solving the problem)," Mokuele said. Another small-scale miner, Ronald Masakwedza from Shurugwi, said: "Most of our gold is going to FPR agents because they are paying cash, which is not the case with FPR. But we are given their own receipts not those issued by FPR." Meanwhile, Mpofu disclosed that FPR has relaxed requirements for smallscale and artisanal gold miners to sell their gold to the State entity.

"The law says we should arrest anyone who is found selling gold without a permit. But we have relaxed requirements and now we are saying just come with your national identity card and we will buy that gold from you. This will not to create confusion because we all know or can't run away from the fact that most artisanal miners don't have the operating papers. So this is not designed to bring confusion but to formalise them. As they deposit their gold they are registered and in the process being formalised," Mpofu said.

The country's small-scale and artisanal gold miners last year delivered 13,2 tonnes of gold during period, higher than the large mining houses which delivered 11,6 tonnes of gold between January and December 2017, according to official data from FPR. Government has supported the artisanal miners who have resorted to improved mineral processing technology through a $40 million gold development facility by the central bank.
- fingaz

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